How Ambitious Parents Can Use the Holidays to Talk Money with Their Kids

The holidays bring together family, traditions, and plenty of teachable moments, especially around money. Whether it’s gift-giving, charitable donations, or simply talking about what matters most as a family, December is one of the easiest and most natural times to help kids build financial awareness.

For Ambitious Parents, this season is more than a moment for presents under the tree. It’s a chance to give your kids a gift that lasts well beyond the holidays. A healthy, confident relationship with money. Here’s how you can make the most of it.

1. Use Real-Life Holiday Moments as Money Lessons

Kids learn best through real experiences, and the holiday season provides a perfect backdrop.

• Gift budgeting: Give kids a set amount to spend on gifts for others. Help them compare prices, make choices, and prioritize.

• Travel costs: If you're traveling, show older kids how airfare, gas, and lodging fit into the family cash flows.

These moments teach kids that money isn’t just an abstract concept, it’s a tool for decision-making. Avoid turning it into a lecture. Keep it short, conversational and age appropriate. We all know how much our kids retain from our conversations, especially when we are doing all of the talking.

2. Introduce the Concept of “Spend, Save, Give”

The holidays are naturally a time when generosity and gratitude take center stage. It’s a great opportunity to introduce (or reinforce) a simple framework.

• Spend: Kids can choose something for themselves, within a limit. This teaches them to navigate wants, value, and trade-offs.

• Save: Encourage them to save a portion of allowance, holiday cash gifts, or earnings toward a goal.

• Give: Let them pick a charity, cause, or even a family friend to help. You can match their contribution to multiply the impact. This simple structure builds early money awareness and encourages empathic decision-making.

3. Start (or Revisit) a Custodial Roth IRA, UTMA, or 529 Plan Conversation

For families who want to build generational wealth, the holidays are a powerful time to talk about how money grows over time. Depending on your children’s ages, and your individual circumstances, here are the most common options:

• Roth IRA for kids with earned income: If your child has a part-time job, babysits, refs hockey games, or does any documented work, you can help them start a Roth IRA. Show them how the power of compounding becomes real very quickly. There are countless examples out there of how starting early can impact future returns over the next 10, 20, 30, and 40 years.

• UTMA or Brokerage Account: If you have a UTMA account already, the holiday season is a natural time to review investments and talk through basic concepts like stocks vs bonds, risk, and long-term growth.

• 529 College Plans: If grandparents want to give meaningful gifts, a contribution to a 529 plan is another one of the ways to do so. They can make it fun by tying a fun gift, like a school sweatshirt or a book about their favorite subject to a 529 contribution.

4. Share Family Stories, Not Just Numbers

Kids don’t remember spreadsheets. They remember stories. Use the holidays to share:

• How you learned about money

• Mistakes you made (your kids will love these)

• How you saved for your first home or car

• What you wish someone taught you earlier

• What money means to your family

This turns financial conversations from something intimidating to something connective and empowering.

5. Use Charitable Giving to Build Values

Most families are already giving during the holiday season. Turn it into a shared experience by involving kids in the decision-making:

• Let them pick a local charity or family you can help together

• Have them participate in shopping for donations

• Discuss why giving matters and how it feels to make an impact

• If you have a donor-advised fund, show them what it is and how it works

This fosters gratitude and builds a habit of intentional generosity.

6. Let Older Kids Peek Behind the Curtain

For teens and college-age kids, the holidays are one of the few times the whole family is together, and that creates a natural opportunity for higher-level concepts. Topics to consider:

• How the family budget works

• What you’re saving for, and why

• How the stock market works (and why checking it every day is unnecessary)

• What investing for retirement really means

• Why financial independence matters, and how to get there

You don’t need to share every detail. Just enough to make money less mysterious and more acceptable to talk about.

7. Make It a New Holiday Tradition

Kids thrive on predictability. Whether it’s decorating the tree or putting out holiday lights, traditions make the season special. So why not add one that pays dividends? Some ideas for your family to discuss:

• A family “money walk” where you talk about goals for next year

• Reviewing a savings goal your child set last year

• Adding money to a charity jar together

• Giving each child a certain dollar amount to donate however they choose

• An annual financial meeting where you share age-appropriate financial lessons

Over time, these traditions compound, just like good investment habits.

The Bottom Line, Money Conversations Do Not Have to Be Awkward

When you weave financial lessons into meaningful family moments, kids grow up confident, capable, and prepared. The holidays can be one of the best times to start since there is often more time spent together as a family.

For Ambitious Parents, this season isn’t just about gifts. It’s about preparing the next generation to thrive.

If you want help building a long-term financial education strategy for your kids, or structuring generational wealth in a thoughtful way, we’re here to help.

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